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Subjects · Leaving Cert Economics

Leaving Cert Economics: Inequality & poverty

How often Inequality & poverty comes up on the Economics papers, every year it was asked, and questions to try.

HL Asked on 4 of the last 5 Higher Level papers, most recently in 2024. most years

OL Asked on 1 of the last 5 Ordinary Level papers, most recently in 2024.

Inequality & poverty, Higher Level(8 marks)

Quick ones on Inequality & poverty.

(a)Relative poverty means…
  1. Lacking the food and shelter needed to survive
  2. Income well below the typical income in that society
  3. Earning less than the ECB interest rate
(b)Which measure would most directly reduce income inequality?
  1. Raising VAT on food and other basics
  2. Cutting the top rate of income tax for high earners
  3. Higher welfare payments funded by progressive taxes
(c)Which is a housing-market cause of homelessness?
  1. Rents rising faster than incomes
  2. Falling house prices
  3. A surplus of social housing
Show the answers

(a) Income well below the typical income in that society

(b) Higher welfare payments funded by progressive taxes

(c) Rents rising faster than incomes

Your turn: Higher Level questions on Inequality & poverty.

Higher Level

Asked on 4 of the last 5 Higher Level papers, most recently in 2024. most years

Every paper, year by year

YearWhere it came up
2025Not asked
2024Q16
2023Q11
2022Q16
2021Q16

Links open the State Examinations Commission’s paper for that year.

More Inequality & poverty questions

Inequality & poverty, 2 marks

Which is a major cause of poverty?

  1. Rising welfare payments
  2. Progressive income taxes
  3. Long-term unemployment
Show the answer

Long-term unemployment

Losing work for a long time cuts income and skills and raises the risk of debt. Welfare payments and progressive taxes reduce poverty rather than cause it.

Inequality & poverty, 2 marks

A means-tested welfare payment is…

  1. Paid only to people who are in paid work
  2. Paid only to those below an income or asset limit
  3. Paid to everyone eligible, whatever their income or assets
Show the answer

Paid only to those below an income or asset limit

Means-testing targets help at those most in need and keeps costs down, but can discourage extra earning or saving. Universal payments go to everyone eligible.

Ordinary Level

Asked on 1 of the last 5 Ordinary Level papers, most recently in 2024.

Every paper, year by year

YearWhere it came up
2025Not asked
2024Q8
2023Not asked
2022Not asked
2021Not asked

Links open the State Examinations Commission’s paper for that year.

More Inequality & poverty questions

Inequality & poverty, 2 marks

Relative poverty means?

  1. Having no food or shelter at all, even to survive
  2. Earning the national minimum wage in a job
  3. Income well below the average in your society
Show the answer

Income well below the average in your society

Relative poverty compares people with others in their country; the EU usually uses income below 60% of the median. Absolute poverty means lacking basic needs like food and shelter.

Inequality & poverty, 3 marks

Which state policy reduces income inequality?

  1. Raising VAT on food
  2. Welfare payments to low-income households
  3. A cut in the top rate of income tax
Show the answer

Welfare payments to low-income households

Welfare payments move income to those with the least, narrowing the gap between rich and poor. Cutting top tax rates or taxing food would widen the gap.

Inequality & poverty, 3 marks

Homelessness caused by a lack of affordable homes can be tackled by?

  1. Building more social housing
  2. Cutting the supply of new homes
  3. Removing all rent supports
Show the answer

Building more social housing

Social housing, provided by councils and housing bodies at below-market rents, adds homes for low-income households and helps reduce homelessness.

Other Economics topics

All of Leaving Cert Economics